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The encyclopedia · Advertising & PR · Marketing decision · 2026

KT advertised 5G at 20Gbps — real speeds were 3% of that, and the fine stands

'20Gbps, 20x faster than LTE' ran for four years; actual speeds were 3% of the claim. The Seoul High Court upheld KT's ₩13.9B fine for deceptive ads.

KT Corporation · 2026-07-16

What happened

From August 2018 to April 2022, KT — one of South Korea's three big mobile carriers — advertised 5G speeds of '20Gbps' and '20x faster than LTE' on its homepage, YouTube and posters. Comparison posters went further: definitive claims of leading nationwide, with specific speed figures for eleven regions and no objective basis behind them.

The KFTC found actual speeds were about 3% of the advertised 20Gbps — nowhere near 20x LTE — and in 2023 fined KT ₩13.93 billion for false, exaggerated and deceptive advertising. KT sued, arguing the ads described technical characteristics rather than guaranteed speeds, and that consumers of ordinary attention would grasp the limits. On 16 July 2026 the Seoul High Court rejected that: 20Gbps cannot be realised in actual usage environments, and consumers — unable to verify speeds without specialist equipment — read the numbers as the service they would actually get.

The comparison posters were separately misleading, the court held: definitive wording and hard figures made unproven claims look like established fact, and the surcharge calculation was lawful. KT filed a Supreme Court appeal on 23 July 2026. In the parallel cases, LG U+ also lost over its ₩2.85 billion fine, while SK Telecom won a partial reduction of its ₩16.83 billion penalty.

Why it happened

  • Spec-sheet numbers become promises: the court said consumers read '20Gbps' as the speed they would get, not a technical vision — and could not verify it themselves.
  • The comparison posters compounded the claim: definitive language and precise regional figures dressed an unproven boast as measured fact.
  • Four years of ads turned a launch claim into a standing misrepresentation — the violation period, and the fine, grew with each year it stayed up.
What it cost₩13.93bn fine upheld; Supreme Court appealcostly

The lesson

Consumers read advertised speeds as what they will get, not a technical vision: when real performance is 3% of the claim, the ad is deceptive whatever the disclaimers say.

Aftermath

KT appealed to the Supreme Court on 23 July 2026. The KFTC's 2023 action covered all three carriers: LG U+ also lost its parallel case over a ₩2.85bn fine and appealed, while SK Telecom won a partial reduction of its ₩16.83bn penalty on surcharge-calculation grounds.

Sources

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